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(EMBARGOED UNTIL 2 FEBRUARY 2015, 2:00PM)
2 February 2015
INVESTMENT COMMITMENTS IN 2014 MET FORECAST;
INVESTMENT NUMBERS FOR 2015 EXPECTED TO MODERATE,
REFLECTING A MORE TARGETED APPROACH
AND UNCERTAIN GLOBAL ECONOMIC ENVIRONMENT
(I)
OVERVIEW
1.
Investment commitments in 2014 met or exceeded EDB’s forecast for all indicators. This
will lead to the creation of 16,100 skilled jobs when the projects are fully implemented.
These results reflect the continued confidence of global companies in Singapore as a
strategic location to base their top decision-makers and key functions.
2.
For 2015, EDB expects the level of investments to moderate in line with Singapore’s stage
of economic development as well as the increased uncertainty of the global economic
environment.
(II)
YEAR 2014 IN REVIEW
3.
In 2014, EDB attracted S$11.8 billion in Fixed Asset Investments (“FAI”), which is at the
upper end of the forecast of S$10 - S$12 billion. Total Business Expenditure Per Annum
(“TBE”) and Value-Added Per Annum (“VA”), at S$7.0 billion and S$12.5 billion
respectively, were within the forecast as well, while the number of skilled jobs created
exceeded the forecast.
Indicator
2013 Actual
2014 Forecast
2014 Actual
Fixed Asset Investments (S$ billion)
12.1
10.0 – 12.0
11.8
Total Business Expenditure Per Annum
(S$ billion)
7.8
6.0 – 7.5
7.0
Expected Value-Added Per Annum
(S$ billion)
16.7
11.5 – 13.5
12.5
No. of Skilled Jobs
21,400
14,000 – 16,000
16,100
(Please refer to Annex A and Annex B for details)
(III)
2015 INVESTMENT OUTLOOK
4.
For 2015, EDB expects investment commitment numbers to continue with the trend since
2013, of a more moderate flow of investments. This reflects our sharper focus on
attracting projects that are in line with Singapore’s stage of economic development,
manpower policies and planned international commitments on carbon emissions. The
2015 forecast also takes into consideration the greater uncertainty in the outlook for the
global economy this year.
Indicator
2014 Forecast
2014 Actual
2015 Forecast
Fixed Asset Investments (S$ billion)
10.0 – 12.0
11.8
9.0 – 11.0
Total Business Expenditure Per
Annum (S$ billion)
6.0 – 7.5
7.0
5.5 – 6.5
Expected VA per annum (S$ billion)
11.5 – 13.5
12.5
11.0 – 13.0
No. of Skilled Jobs
14,000 – 16,000
16,100
13,000 – 14,000
5.
Aside from a more targeted approach to investment promotion, EDB will place greater
emphasis on helping existing companies and sectors strengthen their competitiveness and
make more productive use of their resources. We will also explore ways to help Singaporebased companies create new businesses through innovation, and in so doing, generate
economic growth and good jobs for Singaporeans.
(IV)
CONCLUSION
6.
“The investments commitments achieved in 2014 are a testament to Singapore’s
attractiveness and strength as a global business hub for leading companies seeking to
seize growth opportunities in Asia,” said Dr. Beh Swan Gin, Chairman EDB. “Moving
forward, EDB will complement our efforts in attracting high quality and sustainable
investments with initiatives to strengthen the competitiveness of our sectors, and to spur
innovation-driven growth.”
*-*-* END *-*-*
ABOUT THE EDB
The Singapore Economic Development Board (EDB) is the lead government agency for planning
and executing strategies to enhance Singapore’s position as a global business centre. EDB
dreams, designs and delivers solutions that create value for investors and companies in
Singapore. Our mission is to create for Singapore, sustainable economic growth with vibrant
business and good job opportunities.
EDB’s Home strategy articulates how we are positioning Singapore for the future. It is about
extending Singapore's value proposition to businesses not just to help them improve their bottom
line, but also to help them grow their top line through establishing and deepening strategic
activities in Singapore to drive their business, innovation and talent objectives in Asia and
globally.
For more information on EDB, please visit www.sedb.com
For media enquiries, please contact:
Ms. Qinyan Yu / Ms. Rachel Gong
Tel: (65) 6832-6427 / 6832-6252
Mobile: (65) 9733-9437 / 9296-8248
Email: [email protected] / [email protected]
ANNEX A
DEFINITIONS
Fixed Asset Investment (FAI) refers to capital investment in facilities, equipment and machinery.
Total Business Expenditure (TBE) refers to a company’s incremental operating expenditure in
Singapore (excluding depreciation). The major components include wages and rental.1
Value Added (VA) measures the direct contribution to Singapore’s Gross Domestic Product
(GDP) excluding multiplier effects. The major components include wages and profit.
Skilled Jobs are defined as occupations in the Professional, Manager, Executive, Technician and
Skilled Production Craftsman categories.
Note: The investment commitment classification by industry for 2014 is based on the latest
Singapore Standard Industrial Classification (SSIC 2010).
1
EDB transitioned from tracking Total Business Spending (TBS) to tracking TBE in 2012. TBE is TBS less
depreciation.
ANNEX B
LIST OF TABLES AND CHARTS
Table A: 2014 Investment Commitments by Industry
Chart 1: FAI Investment Commitments (2005 – 2014)
Chart 2: FAI Investment Commitments by Industry (2013, 2014)
Chart 3: FAI Investment Commitments by Region (2013, 2014)
Chart 4: TBE Investment Commitments (2005 – 2014)
Chart 5: TBE Investment Commitments by Industry (2013, 2014)
Chart 6: TBE Investment Commitments by Region (2013, 2014)
Chart 7: VA Expected to be Generated (2005 – 2014)
Chart 8: Total Skilled Employment Created (2005 – 2014)
Table A: 2014 Investment Commitments by Industry
FAI (S$
billion)
TBE (S$
billion)
Expected
VA per
annum (S$
billion)
Skilled Emp
Electronics
1.6
0.2
0.7
572
Chemicals
2.6
0.4
0.8
698
Biomedical Manufacturing
0.8
0.4
0.9
675
Precision Engineering
0.3
0.3
0.3
1,201
Transport Engineering
0.8
0.8
0.4
1,456
General Manufacturing Industries
0.6
0.1
0.6
336
Infocommunications & Media
2.5
0.5
0.8
496
Headquarters & Professional
Services
1.2
3.0
5.5
6,920
Engineering & Environmental
Services
0.5
0.8
2.0
2,226
Logistics
0.6
0.4
0.4
1,290
Education/ Healthcare Services
0.3
0.1
0.1
243
Total
11.8
7.0
12.5
16,113
Industry
Chart 1: FAI Investment Commitments (2005-2014)
S$b
20.0
18.0
18.0
17.2
16.0
16.0
13.7
14.0
12.9
11.8
12.0
12.1
11.8
2013
2014
10.4
10.0
9.4
8.0
6.0
4.0
2.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012
Chart 2: FAI Investment Commitments by Industry (2013, 2014)
2013
Infocomms &
Media, S$1.5b,
12.5%
Logistics, S$0.6b,
4.8%
Precn Engrg,
S$0.6b, 4.8%
T'port Engrg,
S$0.7b, 5.7%
Biomed Mfg,
S$0.8b, 6.6%
HQ & Prof Svcs,
S$0.7b, 6.0%
Gen Mfg Inds,
S$0.1b, 0.8%
Chemicals,
S$2.5b, 20.7%
Engrg & Env
Svcs, S$0.9b,
7.8%
Electronics,
S$3.3b, 26.9%
Education/
Healthcare Svcs,
S$0.5b, 3.4%
Total: S$12.1 billion
2014
Logistics, S$0.6b,
5.1%
Infocomms &
Media, S$2.5b,
21.2%
Precn Engrg,
Healthcare Svcs
S$0.3b, 2.5%
T'port Engrg,
S$0.8b, 6.8%
Biomed Mfg,
S$0.8b, 6.8%
HQ & Prof Svcs,
S$1.2b, 10.2%
Chemicals,
S$2.6b, 22.0%
Gen Mfg Inds,
S$0.6b, 5.1%
Engrg & Env
Svcs, S$0.5b,
4.2%
Electronics,
S$1.6b, 13.6%
Education/
Healthcare Svcs,
S$0.3b, 2.5%
Total: S$11.8 billion
Chart 3: FAI Investment Commitments by Region (2013, 2014)
2013
S'pore,
S$3.1b, 25.9%
USA,
S$3.7b, 30.7%
Others,
S$0.9b, 7.5%
India,
S$0.1b, 0.7%
China,
S$0.3b, 2.6%
Japan,
S$0.7b, 5.5%
Europe,
S$3.3b, 27.1%
Total: S$12.1 billion
2014
S'pore, S$2.0b,
16.9%
USA, S$1.8b,
15.3%
Europe, S$3.1b,
26.3%
Others, S$4.1b,
34.8%
Japan, S$0.3b,
2.5%
India, S$0.01b,
0.02%
China, S$0.5b,
4.2%
Total: S$11.8 billion
Chart 4: TBE Investment Commitments (2005-2014)
S$b
9.0
7.8
8.0
7.2
7.3
7.0
6.8
7.0
6.2
6.2
6.1
5.8
6.0
5.2
5.0
4.0
3.0
2.0
1.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Chart 5: TBE Investment Commitments by Industry (2013, 2014)
2013
Precn Engrg,
S$0.2b, 3.0%
Logistics, S$0.2b,
3.0%
T'port Engrg,
S$0.9b, 11.5%
Biomed Mfg,
S$0.2b, 2.6%
Infocomms &
Media, S$1.5b,
18.9%
Chemicals,
S$0.3b, 4.2%
Education/
Healthcare Svcs,
S$0.1b, 1.9%
Electronics,
S$0.6b, 8.1%
HQ & Prof Svcs,
S$1.8b, 23.6%
Gen Mfg Inds,
S$0.1b, 0.6%
Engrg & Env
Svcs, S$1.8b,
22.6%
Total: S$7.8 billion
2014
T'port Engrg,
S$0.8b, 11.4%
Biomed Mfg,
S$0.4,b 5.7%
Chemicals,
S$0.4b, 5.7%
Education/
Healthcare Svcs,
S$0.1b, 1.5%
Precn Engrg,
S$0.3b, 4.3%
Electronics,
S$0.2b, 2.9%
Logistics, S$0.4b,
5.7%
Engrg & Env Svcs,
S$0.8b, 11.4%
Infocomms &
Media, S$0.5b,
7.1%
Gen Mfg Inds,
S$0.1b, 1.4%
HQ & Prof Svcs,
S$3.0b, 42.9%
Total: S$7.0 billion
Chart 6: TBE Investment Commitments by Region (2013, 2014)
2013
S'pore,
S$2.0b, 25.1%
USA,
S$2.5b, 31.9%
Others,
S$0.6b, 7.1%
India,
S$0.2b, 2.1%
China,
S$0.2b, 2.9%
Japan,
S$0.6b, 7.2%
Europe,
S$1.8b, 23.7%
Total: S$7.8 billion
2014
S'pore, S$1.3b,
18.6%
USA, S$1.6b,
22.9%
Others, S$0.9b,
12.9%
India, S$0.1b,
1.4%
China, S$0.3b,
4.3%
Japan, S$0.5b,
7.1%
Europe, S$2.3b,
32.8%
Total: S$7.0 billion
Chart 7: VA Expected to be Generated (2005-2014)
S$b
25.0
20.3
20.0
16.7
15.5
14.7
15.0
14.4
13.4
12.5
12.5
11.6
10.8
10.0
5.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Chart 8: Total Skilled Employment Created (2005-2014)
'000s
25.0
21.4
21.3
20.3
20.0
18.6
18.6
17.2
16.4
15.9
16.1
15.2
15.0
10.0
5.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014